Close Menu
Crypto Startup
    Instagram
    • Privacy Policy
    • Terms Of Service
    • Social Media Disclaimer
    • DMCA Compliance
    • Anti-Spam Policy
    Instagram
    Crypto StartupCrypto Startup
    • Home
    • Crypto News
      • Bitcoin
      • Ethereum
      • Altcoins
      • Blockchain
      • DeFi
    • AI News
    • Stock News
    • Learn
      • Crypto for Beginners
      • AI for Beginners
      • AI Tips
      • Make Money with AI
    • Reviews
    • Tools
      • Best AI Tools
      • Crypto Market Cap List
      • Stock Market Overview
      • Market Heatmap
    • Contact
    Crypto Startup
    Home»Crypto News»Bitcoin»AI Is Overbuilt, and Bitcoin Could Benefit From It
    AI Is Overbuilt, and Bitcoin Could Benefit From It
    Bitcoin

    AI Is Overbuilt, and Bitcoin Could Benefit From It

    October 9, 20263 Mins Read
    Share
    Facebook Twitter LinkedIn Pinterest Email
    kraken




    Hayes leaves room for an AI bull case, arguing stronger demand within a year could make AI infrastructure companies more profitable overall.

    Arthur Hayes, the former BitMEX CEO and co-founder of crypto investment firm Maelstrom, told CNBC at the Gamma Prime Investing Conference in Singapore that humanity is “wasting multi-trillion dollars” on AI data centers.

    His bet is that the overbuilding ends in a crash and a bailout, and that Bitcoin and other crypto absorb the money that follows.

    kukoin

    Overbuilt, Then Bailed Out

    The buildout, he argued, will leave computing power “extremely cheap and extremely plentiful.” “If you study financial history and you study every single major technological rollout, it always is overbuilt. There always is a crash, and there always is a bailout,” he stated, pointing to the aftermath of the 2008 financial crisis and other episodes since.

    “Thankfully, we have Bitcoin and other crypto to soak up that excess liquidity, and so we know the asset that’s going to perform the best when the bailout comes,” he added, telling investors “you just have to be patient.”

    He claimed SpaceX, OpenAI and Anthropic are among the end users behind demand for computing power, and that none of them makes money.

    His contention is backed by Anthropic’s own numbers, with the firm recently sharing a prospectus ahead of a possible IPO that showed $4.6 billion in 2025 revenue, up from $400 million, against net losses near $42 billion, including a $34 billion noncash charge.

    Additionally, compute and infrastructure cost $7.33 billion, which was over half of $12.65 billion in operating expenses.

    According to Hayes, once the data centers under construction are finished, infrastructure providers will want payment for the compute Anthropic and the other AI firms committed to, which he expects in late 2027 or 2028.

    You may also like:

    He did leave room for a different outcome, though, where AI could become “so useful” over the next 12 months that demand expands enough for AI companies to become profitable. Some suppliers already earn money, he noted, including the likes of Nvidia.

    The Debt Behind the Argument

    As CryptoPotato reported in September, Hayes had pointed out that compute demand from some of the biggest artificial intelligence builders backs more than $1 trillion of investment-grade debt.

    According to him, a downgrade would leave insurers tied to that debt short of capital, pushing Washington to buy compute as a last resort or print money to rescue them.

    Before that, the crypto investor had predicted that AI spending would slow next year, then contract, with bailouts bigger than 2008 that could possibly take Bitcoin near $1 million.



    Source link

    tradingview
    Share. Facebook Twitter Pinterest LinkedIn Tumblr Email

    Related Posts

    Arthur Hayes Sees Mega Crypto Bull Run Beyond AI Encryption Fears

    October 11, 2026

    AI, ECDSA, and Bitcoin’s Endgame? Ledger CTO Pushes Back Against Cryptographic Apocalypse Predictions

    October 10, 2026

    Bitcoin Rebounds to $83,000 With BTC Price Weekly Close in Focus

    October 10, 2026

    Bitcoin, Ether Prices Hit by ETF Selling as 2-Day Outflows Near $1 Billion

    October 9, 2026
    Add A Comment
    Leave A Reply Cancel Reply

    zkp
    Latest Posts

    MASSIVE XRP NEWS! (RIPPLE, CANTON & DTCC INTEGRATION NOW?!)

    October 10, 2026

    Trade Using Claude Ai Trading Bot | Trading For Beginners | Delta Exchange India MCP

    October 10, 2026

    3 Questions: What is the best path forward for AI in academia? | MIT News

    October 10, 2026

    The Easiest Ways To Make Money With AI in 2026

    October 10, 2026

    Best AI Courses for Free 2027 | Complete Future-Ready AI Course 2027 | Top AI Courses | Simplilearn

    October 10, 2026
    coinbase
    LEGAL INFORMATION
    • Privacy Policy
    • Terms Of Service
    • Social Media Disclaimer
    • DMCA Compliance
    • Anti-Spam Policy
    Top Insights

    Arthur Hayes Sees Mega Crypto Bull Run Beyond AI Encryption Fears

    October 11, 2026

    CFTC proposes prediction contract and sportsbook divide

    October 10, 2026
    kraken
    Instagram
    © 2026 CryptoStartup.news - All rights reserved.

    Type above and press Enter to search. Press Esc to cancel.